LGA SA and Primary Producers SA working together to try to alleviate rates pain on farmers

An Advertiser survey can reveal proposed residential and primary producer rate rises across the state as councils grapple with providing vital services during one of the toughest droughts on record.

Regional councils reliant on rates revenue to fund vital repairs and maintenance are at risk of becoming unsustainable as its farmers suffer from one of the toughest droughts on record.

The Local Government Association of SA is working with Primary Producers SA on ways to alleviate the upcoming rates burden on farmers, without affecting the councils’ cashflow.

An Advertiser survey found primary producers faced rate hikes of 3 to 9.5 per cent, with some regional councils receiving up to 70 per cent of their rate revenue from farmers.

LGA SA president Heather Holmes-Ross said one proposal, in its infancy, was for the state government to offer a financing option so councils could defer rates for farmers and businesses without impacting cashflow or services.

She added the LGA wanted a “commonsense” approach to the landscape levy – which councils collected on rates notices on behalf of the government and was worth about $61m.

“At the moment, councils must pay the state government regardless of whether ratepayers can, and that creates unnecessary financial strain, particularly during drought,” she said.

“If more people need to defer their rates, the pressure on council budgets grows – and in smaller communities that limits what councils can deliver.”

Coorong District Mayor and farmer Paul Simmons said its council started considering impacts on its cash flow during 2024-25, as farmers suffered from their driest season on record.

“The challenge we have in local government is that the more rural the council, the more road network and the more likely you’ll struggle to be sustainable,” Mr Simmons said.

“Costs have exploded and we’re in a challenging position of how we provide for rural communities with an expectation to replace ageing infrastructure.

“Some rural councils are relying on the rural rate income for their towns – for some it’s 70-80 per cent – so their cash flow will be crunched.”

Mr Simmons, who represents the LGA on the government’s drought roundtable, said if rates could be deferred for farmers, it could be “$10,000 back in the farmer’s pocket to pay the bills, put his crop in or feed his sheep”.

As well as rates, councils relied on federal government assistance grants to provide services and maintain roads, however grants funding has nearly halved in the past 30 years.

Coorong District Mayor and farmer Paul Simmons at his Coomandook property. Picture: Dean Martin

Victor Harbor Council’s proposed primary production rate rise was 8 per cent, down from 15 last financial year, following budget discussions on best ways to support farmers.

A council spokeswoman said the council had also introduced a farm business support program which provided up to $2500 to cover operational costs such as power bills and fodder.

The council website stated 14 applications had been approved as of May 21 and ‘many (recipients) have expressed sincere gratitude … a few recipients were even moved to tears’.

Flinders Ranges Council chief executive Sean Holden said while its council was yet to consider its draft budget, “strong consideration” would be those affected by the drought.

“The council … is only too aware of the high cost of living compacted by the worst drought in 150 years and three consecutive years of failed crops,” Mr Holden said.

Originally published as LGA SA and Primary Producers SA working together to try to alleviate rates pain on farmers